Sir Mick Jagger's girlfriend took her own life in her New York apartment and rumours subsequently surfaced suggesting her namesake company had been facing serious financial troubles, particularly in its UK operations, with company accounts filed in October showing losses of just under £3.75m for the year 2012.
Fashion critic and friend Cathy Horyn fuelled the claims in a tribute piece posted on the New York Times website on Tuesday, when she alleged that Scott, 49, had been preparing to announce the closure of the luxury brand on Wednesday.
However, a spokesperson for PR Consulting, which looks after publicity for Scott's label, has now spoken out to silence the reports, calling the rumours "misleading and inaccurate".
A statement released by the rep on Friday reads, in part: "Her business overall was only seven years old and although some areas of the business had not yet reached their potential, other parts of her business were proving successful...
"The fact that L'Wren Scott would have been hounded by creditors or riddled with debt is preposterous... Ms. Scott was considering a re-structure of her global business."